Federal Reserve Act

The Federal Reserve Act is a law passed by the United States Congress in 1913 that created the Federal Reserve System. The Federal Reserve System is the central banking system of the United States and is responsible for setting monetary policy, regulating banks, and providing financial services to the public. The Federal Reserve Act is one of the most important pieces of legislation in the history of the United States and has had a profound impact on the economy.

History of the Federal Reserve Act

The Federal Reserve Act was passed in response to the Panic of 1907, a financial crisis that caused a severe economic downturn. The Act was designed to create a more stable banking system and to provide the government with more control over the money supply. The Act established the Federal Reserve Board, which was responsible for setting monetary policy, and the Federal Reserve Banks, which were responsible for regulating banks and providing financial services to the public. The Act also established the Federal Open Market Committee, which is responsible for setting interest rates.

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Summary

The Federal Reserve Act is one of the most important pieces of legislation in the history of the United States. It was passed in 1913 in response to the Panic of 1907 and was designed to create a more stable banking system and to provide the government with more control over the money supply. The Act established the Federal Reserve Board, the Federal Reserve Banks, and the Federal Open Market Committee, which are all responsible for setting monetary policy and regulating banks. For more information about the Federal Reserve Act, please visit the Federal Reserve website or the U.S. Treasury website.

See Also

• Monetary Policy
• Federal Reserve System
• Federal Open Market Committee
• Federal Reserve Board
• Federal Reserve Banks
• Interest Rates
• Money Supply
• Banking System
• Financial Crisis
• Panic of 1907

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